Since the seventeenth century, the perfect place to look investment property for sale is in Barbados. Land has always been at an increasing premium on the tiny Caribbean Commonwealth island because it is only 21 miles long and 14 miles wide at it’s widest point.
If you are searching for investment property for sale in Barbados in 2019, the tropical isle offers a perfect storm for investment. Why? These are the reasons below.
- Inflated property prices are now matching true value
- Local bank rates are low and banks are looking for mortgages
- Tourism is at a busting high
- Airbnb/VRBO/booking.com have become popular
- Government policies are strengthening the economy
A beautiful beach location for extra income
Investment Property for Sale in Barbados Now
You may be asking why 2019 is better to search for investment property for sale in Barbados – rather than any other year. The reason is simple…choice at the lowest possible cost.
You may already be aware of the normal reasons to invest in Barbados….at any time.
- Amazing climate
- attracts a lot of tourists
- many amenities, activities and events
- excellent infrastructure
- easy to get to by air
- good health service
- stable government…(no coups, civil unrest etc)
- safety is better than in most Caribbean islands.
But 2019 reveals an additional benefit for us. With the recession, property prices did (finally) drop and the inflated prices became realistic again. In Barbados, the island is so small and the population is high (over 300,000) so land prices have always increased…which is great for investment.
However, in the years just before the world recession (2009ish) the land prices were at an all time high. As in many places worldwide, there was a property bubble burst and while property never fully plummets in value, investment properties for sale in Barbados are now the lowest in price and most reasonable they have been for about 25 years…and still are not selling.
Why aren’t they selling? Well , so far investors have not got wind of the opportunity. Banks have been loathe to lend until now as weak government economic policies and the recession were causing the Barbados economy to take a nose dive. But the island is looking up again.
Then there is the bonus of a booming tourism market. With the hurricanes of 2016 sweeping through the Caribbean…and avoiding Barbados, tourists opt for Barbados because the infrastructure of beaches, restaurants, hotels is still intact. With the repeated tsunamis in the East Indies people opt for Barbados because the island is a safer bet.
And because Barbados is still reasonably safe, again people opt for Barbados. I asked a tourist once while lounging in a pool one beautiful afternoon in Barbados why they came back for 20 years repeatedly. It was an eye opener for me.
Because we can leave our hotel and go for a stroll and we will be safe. We do not need escorts, we won’t be harassed. Imagine this couple coming to your rental for 20 years!!!!
And now with the new stronger government policies which started after the 2018 election, market confidence has been returning to Barbados to improve financial dealings even though they still have some work to do.
Property prices can only go up. that means your investment earnings will too.
“It’s Never Been Like This Before”
Ron Karp looked perplexed and frustrated at the same time. He was talking about how 2019 is seeing the lowest cost in Barbados property he has seen in his lifetime. Ron is an esteemed and very experienced real estate agent in Barbados , owner of Ron Karp Realty. If you are looking to purchase a property, it is worth seeking him out.
“It’s never been like this before” he said, referring to the immense opportunity in investment property in Barbados in 2019. Property prices are so low in 2019, any purchaser could only make money if they bought now because the price could only go up.
Sunset Crest Members Pool
He explained that the recession of 2009 had hit Barbados and left projects abandoned, new built properties empty because of over inflated market prices and an exodus of the foreign nationals who purchase and invest.
Then followed 8 years of weak government policies driving the island further into the red economically and causing businesses to hold rather than grow.
That was coupled with a clampdown on the Caribbean being a tax haven for many of the wealthy from UK, USA, Canadian and newer stricter laws in overseas property ownership.
In other words, it’s a buyer’s market…you can negotiste in your favour!
Who Says Rentals are Down? The Rise of Airbnb
My son bumped into a Canadian pilot on the street near the Carlisle beach in Barbados recently. The pilot explained he couldn’t find a hotel room, Barbados was so busy. So he booked a cheap Airbnb. Barbados does not have enough hotel rooms (at reasonable rates).
It has been reported that Barbados produces low return on investment rentals but the recent surge of Airbnb properties in Barbados has meant that average homeowners have been making good return on their property investment with the Airbnb signup. So naturally I disagree.
Airbnb allows you to estimate your income for free when you visit their website too. I calculated a simple low cost Airbnb and found an income after the 4 – month peak season months (December to March) to be close to be over £7000 (US$8963).
Hoteliers have had to now compete with the Airbnb hosts because the growth of Airbnb has been large. Barbados has multiple events all year round to keep a flow of visitors coming so really they should not be complaining in our peak months. Not everyone wants to Airbnb… so hotels will still do well and will always get great government concessions!
Here are the peak tourist visit periods in Barbados:
- Winterpeak season November to early April
- International rally car racing
- Horse racing (sandy lane Gold Cup)
- Carnival Cropover season (July/August)
- International surfing meets
- Food and Wine and Rum Festival (October)
Click here to find more details on your FREE Airbnb signup and member information of how to become an Airbnb host.
Building and Renovating in Barbados
Being in the construction industry professional, I know doing construction projects in Barbados can be frightening to a foreign investor as it is a different culture and different laws. That’s why we provide our services! If you are considering an investment property for sale in Barbados, it is wise to remember that you benefit from labour costs being about 50% lower than in the UK and the US and therefore a huge saving for your investment plan.
Materials however are more expensive as practically everything is shipped to the island. You may choose to save by shipping materials in from Miami but be warned that as yet the Barbados ports are steeped in bureaucracy and can charge ridiculous sums. For example…any furniture that sits on the ground carries a 95% tax on the cost of goods and the transport! Buildings materials however only carries a 20% tax.
You will need to hire a customs broker to meander the idiosyncrasies of the Barbados port system or, instead save all the hassle and buy from the competitive hardware stores in Barbados. (That would be my advice!)
Whatever your decision, we are here to provide you with services you need online!
This Is Your Time
It’s a buyer’s market in Barbados and this is an investment that will increase in value because the property market can only go up right now. It’s your time if you are looking for an investment property in Barbados.
You actually don’t need to buy large properties to get a good return on investment as a wide variety of property types are booked in Barbados. Small cottages are very popular and we have included a couple of our lower cost houseplans here as ideas for your investment.
Feel free to contact us if you have any questions regarding building and developing in Barbados. We can provide you with free timeframes and costs as rough budgets to help get your project going!
One Last Word
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We are looking forward to your comments and questions!